The key to evaluating risk factors in your plan means you must take an honest look at each section to determine its potential impact on your business. Start by learning the potential risk factors most companies must review to stay competitive. Then, implement a risk-assessment process that helps you identify problems in your marketing plan to more quickly respond to change and to prevent losses for your company.

Target Market

Miscalculating your target market or not completing enough market research presents a risk factor. Minimal surveying of customers to find out what they really need and want may result in too few facts or erroneous conclusions. A complete survey of potential or current customers should uncover the real challenges your market faces that your product or service needs to solve. That way, you can create marketing message that appeals to new prospects with similar problems. Another possible problem related to your target market is that prospects may require more time to convert into paying customers, possibly causing a cash flow if you estimated higher sales than actually occur.

Branding

If you’re a new company, you probably haven’t had much time to build your branding. People need to recognize and trust your brand, and that process can take years. If your marketing plan overestimates the effect of your brand or believes your brand is more relevant than it currently is, the plan likely does not account for the extra time or marketing and promotional efforts needed to build value and trust with prospects.

Trends and Regulations

Keeping on top of industry trends is vital to staying competitive, but if your plan does not include a method for identifying and assessing trends, your company’s bottom line may be at risk. Your plan needs to include a schedule for carefully reviewing your competitors to uncover any new pricing strategies, new products and services or shifts in their marketing messages. You also need to look at trends in technology, such as new automation processes that may mean less of a market for your product or service. Consumer preferences may also change, especially in the health and food industries.

Lack of Tracking

Your plan needs to include methods for tracking the success of your marketing strategies. Otherwise, you do not know which of your marketing attempts work or are failing. Your tracking system needs to assess why sales go up or down and which strategies and promotions work best. You also need to keep track of economic factors that may affect your company. Whether you sell locally or globally, keeping on top of economic changes helps you to determine the marketing and promotional activities you need to implement to counter negative conditions.

About the Author

Nancy Wagner is a marketing strategist and speaker who started writing in 1998. She writes business plans for startups and established companies and teaches marketing and promotional tactics at local workshops. Wagner's business and marketing articles have appeared in "Home Business Journal," "Nation’s Business," "Emerging Business" and "The Mortgage Press," among others. She holds a B.S. from Eastern Illinois University.